Core Viewpoint - Beijing Oriental Yuhong Waterproof Technology Co., Ltd. plans to invest 600 million RMB in a new materials industry chain project in Shanglin County, Nanning, Guangxi, focusing on mining, processing, and production of various products [1][2]. Group 1: Project Details - The project will include mining, primary and deep processing of ores, and the production of products such as decorative marble slabs and special mortars [1]. - The construction will be carried out in phases, with the first phase covering approximately 50 acres for high-end limestone products and decorative stone slabs, expected to start within three months after land acquisition [1]. - The second phase will also cover about 50 acres for the production of special mortars and putty powder, with potential future investments in related industries depending on resource and market conditions [1][2]. Group 2: Financial Projections - Once fully operational, the project is expected to generate an average annual output value of approximately 800 million RMB and contribute around 40 million RMB in annual taxes [3]. Group 3: Stock Performance - As of the close of trading on the announcement date, Oriental Yuhong's stock price was 12.39 RMB per share, reflecting a 1.56% increase [4].

Core Viewpoint - The company has signed a project investment agreement with the People's Government of Shanglin County, Nanning, Guangxi, to invest 600 million RMB in the establishment of a new materials industry chain project [1] Group 1: Project Details - The project will include the development and production of products such as mining, primary and deep processing of ores, and special mortar for decorative marble slabs [1] - The construction will be carried out in phases, with each phase starting within three months after obtaining land that is ready for construction, and products expected to be produced within 18 months from the start of construction [1] Group 2: Financial Aspects - The company’s subsidiary, Nanning Dongfang Yuhong New Materials Co., Ltd., will be the main entity for project implementation, investing no more than 600 million RMB, which includes mining rights [1] - On September 24, 2025, Nanning Dongfang Yuhong successfully bid 267 million RMB for the mining rights of limestone in Tanghong Township, Shanglin County [1]

Core Viewpoint - The company has signed a project investment agreement with the government of Shanglin County, Nanning, Guangxi, to invest 600 million RMB in the establishment of a new materials industry chain project [1] Group 1: Project Details - The project will include the development and production of products such as mining, primary and deep processing of ores, and special mortar for decorative marble slabs [1] - The construction will be carried out in phases, with each phase starting within three months after obtaining land that is ready for construction, and products expected to be produced within 18 months from the start of construction [1] Group 2: Financial Commitment - The company’s subsidiary, Nanning Dongfang Yuhong New Materials Co., Ltd., will be the main entity for project implementation, investing no more than 600 million RMB, which includes mining rights [1] - On September 24, 2025, Nanning Dongfang Yuhong successfully bid 267 million RMB for the mining rights of limestone in Tanghong Township, Shanglin County [1]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in Q4 is under pressure due to a significant decline in PX market conditions, with Q4 revenue at 81.3 billion yuan, down 5.6% year-on-year and 3.2% quarter-on-quarter, resulting in a net loss of 1.52 billion yuan [5][6] - The company is actively advancing its new materials projects, which are expected to enhance its growth trajectory in the future, particularly in the fields of renewable materials and high-end synthetic materials [7][8] - The company has implemented share buyback plans and has seen significant share purchases by major shareholders, reflecting confidence in its future development [8] Financial Performance - In 2024, the company achieved a revenue of 326.5 billion yuan, a slight increase of 0.4% year-on-year, but the net profit attributable to shareholders decreased by 37% to 724 million yuan [5][10] - The report forecasts a decline in profitability for 2025-2026, with net profits expected to be 2.82 billion yuan and 4.01 billion yuan respectively, reflecting a downward adjustment of 28% and 34% [8][10] Market Conditions - The Brent crude oil average price in Q4 was 74 USD/barrel, down 11% year-on-year, impacting the company's margins negatively [6] - The report highlights that while refining and polyester yarn price differentials have expanded, the significant drop in PX price differentials has led to a decline in overall performance [6] New Materials Development - The company is focusing on expanding its new materials product line, including EVA, POE, DMC, PC, and ABS, with several projects already in production [7] - The successful trial production of various new materials indicates a strategic shift towards sustainable and high-value products [7] Shareholder Confidence - The company has executed three phases of share repurchase plans, totaling 5.53 billion shares, which is 5.46% of total shares, amounting to 6.99 billion yuan [8] - The consistent cash dividend policy over the past 15 years, with a payout ratio of 64.93% in the last three years, demonstrates a commitment to shareholder returns [8]